Decline in trading volumes hurt eToro's third-quarter results, stock falls in early trading

eToro reported third-quarter results with a 13% decline in net contribution to $186 million. Adjusted net profit fell 60% to $24 million, and the stock is down 8% in pre-market trading. The company announced a $250 million share buyback program.

eToro, a company providing a trading platform for various investment instruments, published its financial results for the third quarter, indicating a decline in trading volumes that hurt its performance. The stock is weakening nearly 8% in pre-market trading on Nasdaq, approaching low levels. eToro recorded a 13% drop in net contribution, which totaled $186 million. GAAP net profit fell 74% to $15 million, and adjusted net profit fell 60% to $24 million. Adjusted EBITDA fell 56% to $34 million. Adjusted net profit per share was 26 cents, 2 cents below analyst expectations. The company had about $1.2 billion in cash at the end of the quarter, including $76.9 million in crypto assets. Assets under management totaled $20.8 billion at the end of the quarter, falling to $19.2 billion in October. The board approved a share buyback program of up to $250 million. CEO Yoni Assia said the company launched a new app with AI at its core and is expanding trading around the clock. 15 analysts cover the stock, of which 10 are positive and 5 neutral, with an average target price 83% above the current stock price.